GM Financial lease originations soar

General Motor’s captive finance arm GM Financial has announced net income of $179 million for the quarter ended September 30, 2015, compared to $158 million for the same period the previous year.

Earnings for the nine months ended September 30, 2015 were $515 million, compared to $478 million for the nine months ended September 30, 2014.

The results show a substantial hike in GM Financial’s operating lease originations. Earlier this year, General Motor announced it would redirect all its lease incentives to GM Financial, instead of distributing them among GM Financial, Ally Financial, and to a smaller extent US Bank.

Latest figures show operating lease originations were $6.2 billion for the quarter ended September 30, 2015, compared $1.8 billion for the same quarter in 2014.Operating lease originations for the nine months ended September 30, 2015 were $14.8 billion, compared to $4.1 billion for the nine months ended September 30, 2014. Leased vehicles, net was $16.9 billion at September 30, 2015.

Auto loan originations also showed a big increase, to $3.2 billion in the third quarter, up 61% from a year ago.

Consumer loan originations held steady at $4.7 billion for the quarter ended September 30, 2015, compared $4.1 billion for the quarter ended September 30, 2014. Consumer loan originations for the nine months ended September 30, 2015 were $13.1 billion, compared to $11.1 billion for the nine months ended September 30, 2014. The outstanding balance of consumer finance receivables was $28 billion at September 30, 2015.

There was only a slight rise in delinquency rates. Consumer finance receivables 31-to-60 days delinquent were 4% of the portfolio at September 30, 2015, compared to 3.9% at the same point in the previous year. Accounts more than 60 days delinquent were 1.6% of the portfolio at September 30, 2015, compared to 1.7% at September 30, 2014.

Annualized net credit losses were 1.9% of average consumer finance receivables for the quarter ended September 30, 2015, compared to 2.0% for the quarter ended September 30, 2014. For the nine months ended September 30, 2015, annualized consumer net credit losses were 1.7%, compared to 1.8% for the nine months ended September 30, 2014.